Introduced on 1st July 1983, 'Education Tax' is a compulsory wage based contribution system, the proceeds of which are used to assist the Ministry of Education with needed finance. Everyone within the workforce pays Education Tax, including employers, employees and the self-employed.
The Education Tax is deducted from your Statutory Pay monthly, paid to the 'Collectorate' on the 14th day of the following month. (e.g. if you earn money in January, you must will pay Education Tax by 14th February). It is an offence for an employer not to pay this tax and may result in an appearance at a Resident Magistrate's Court for failure to pay. This can prove extremely expensive as employers are also liable to pay a fine and interest of 40% per annum on all outstanding Education tax deductions, as well as the actual Tax charge.
The calculation for interest is; Education Tax x 40% x number of days outstanding ÷ 365
Some employers do not have to pay the Education Tax:
People who read 'Understanding Education Tax? | iCalculator' also viewed the following finance guides and tax calculators: